Shares of AXT Inc. (NASDAQ:AXTI) reached a new 52-week high during mid-day trading on Friday after Northland Securities raised their price target on the stock from $4.50 to $7.00. Northland Securities currently has an outperform rating on the stock. AXT traded as high as $5.08 and last traded at $5.06, with a volume of 261,168 shares traded. The stock had previously closed at $4.94.
The analysts wrote, “Despite the stock recent push to $5.00, we believe shares remain undervalued and AXTI will continue to deliver results that are in-line or better for the foreseeable future,” analyst Tom Sepenzis wrote in a note.Indium Phosphide ImportanceThe company provides Indium Phosphide (InP) and Gallium arsenide, key semiconductor material for telecom carriers and device manufacturers. Indium Phosphide (InP) is essential for optical systems to deliver the expected performance for data center, mobile backhaul, metro and long-haul applications. On the other hand, Gallium arsenide is used to make devices such as integrated circuits, infrared light-emitting diodes, laser diodes, solar cells and optical windows.”We believe the continued push by carriers worldwide towards 100G and 400G optical infrastructure will help AXTI deliver additional growth moving forward, with 5G cellular delivering significant upside opportunity 2–3 years out,” Sepenzis noted.Related Link: Infant Tech Company Research Frontiers Could Grow Up To Be Worth $6 A ShareIn addition to carrier upgrades, Indium Phosphide is in great demand from Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL), Amazon.com, Inc. (NASDAQ: AMZN), Facebook Inc (NASDAQ: FB), Alibaba Group Holding Ltd (NYSE: BABA) and Baidu Inc (ADR) (NASDAQ: BIDU) for their data center upgrades.Gallium ArsenideIn addition, the June quarter also saw a rebound in its gallium arsenide business and the analyst expects additional growth in the September quarter.”We have modeled a modest 3.0 percent Q/Q growth, but believe the persistent strength in the Chinese handset market and initial unexpected strength in Apple will help AXTI deliver results that are in-line to better in the current quarter,”
AXTI has been the subject of a number of other reports. Zacks Investment Research raised shares of AXT from a “hold” rating to a “strong-buy” rating and set a $4.50 price target for the company in a research report on Tuesday, August 23rd. Needham & Company LLC upgraded AXT from a “hold” rating to a “buy” rating and set a $5.50 price objective on the stock in a report on Thursday, July 28th. Finally, B. Riley restated a “buy” rating and issued a $4.80 price objective on shares of AXT in a report on Tuesday, August 2nd. Five equities research analysts have rated the stock with a buy rating and one has assigned a strong buy rating to the company’s stock. AXT currently has a consensus rating of “Buy” and a consensus target price of $5.81.
In other AXT news, VP Robert G. Ochrym sold 26,577 shares of the stock in a transaction that occurred on Monday, August 29th. The stock was sold at an average price of $4.39, for a total transaction of $116,673.03. Following the transaction, the vice president now owns 55,577 shares in the company, valued at $243,983.03. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Company insiders own 7.29% of the company’s stock.
A number of institutional investors have recently made changes to their positions in the stock. A.R.T. Advisors LLC bought a new position in shares of AXT during the second quarter valued at approximately $101,000. Coe Capital Management LLC bought a new position in shares of AXT during the second quarter valued at approximately $391,000. Vanguard Group Inc. increased its position in shares of AXT by 1.5% in the second quarter. Vanguard Group Inc. now owns 1,420,128 shares of the company’s stock valued at $4,530,000 after buying an additional 21,488 shares during the period. Dimensional Fund Advisors LP increased its position in shares of AXT by 2.4% in the second quarter. Dimensional Fund Advisors LP now owns 1,885,895 shares of the company’s stock valued at $6,016,000 after buying an additional 44,701 shares during the period. Finally, EAM Investors LLC bought a new position in shares of AXT during the second quarter valued at approximately $1,289,000. Institutional investors own 42.35% of the company’s stock.
The company’s 50-day moving average is $4.43 and its 200 day moving average is $3.47. The company’s market cap is $166.29 million.
AXT (NASDAQ:AXTI) last posted its earnings results on Wednesday, July 27th. The company reported $0.03 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.01 by $0.02. The company earned $20.50 million during the quarter, compared to analyst estimates of $19.97 million. AXT had a negative return on equity of 0.01% and a negative net margin of 0.01%. The firm’s revenue was down 2.4% compared to the same quarter last year. Analysts forecast that AXT Inc. will post $0.13 EPS for the current year.
AXT Company Profile
AXT, Inc (AXT) is a developer and producer of compound and single element semiconductor substrates, also known as wafers. The dominant substrates used in producing semiconductor chips and other electronic circuits are made from silicon. The Company is engaged in the design, development, manufacture and distribution of compound semiconductor substrates and sale of materials.
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